Personal Finance Virtual South Carolina

Why do companies sometimes add extra fees at the end of the buying process?

The companies aren't very good at Web site building.

People are likely to pay the fees anyway at that point .

This is an example of a "roach motel" scheme.

Those fees are always accidental and never intentional.

People are likely to pay the fees anyway at that point

Jarvis enrolling in a 30-day streaming subscription for $25 a month. As he was finalizing payment, a box popped up with this message, "Are you SURE you don't want to join for a year for $20 a month?" To purchase the month-to-month plan instead of the annual plan, Jarvis had to click a button stating, "No, I don't want to save money."

Which type of dark pattern did the streaming service use with Jarvis?

Confirm Shaming

Roach Motel

Hidden Fees

Sneak into Basket

Confirm Shaming

Which of the following is a non-monetary reason to prevent identity theft?

Victims might have money taken out of their accounts.

Victims might not get reimbursed for losses.

Most people lose over $100 in data breaches.

It can take a lot of time for victims to prove their real identity and straighten out fraudulent charges.

It can take a lot of time for victims to prove their real identity and straighten out fraudulent charges.

Zasia's boyfriend's sister needed to go to the doctor but had no insurance. She asked Zasia if she could use her insurance card to save some money. Zasia felt bad for her and agreed to let her use the insurance card. Months later, without Zasia knowing it, the boyfriend's sister was still using the insurance info and had also shared it with some of her friends to use, too.

Which of the following could be a negative financial consequence for Zasia?

People at the insurance company will be horrified at all of "Zasia's" medical problems.

Zasia can have her tax refunds intercepted.

Random friends of friends will start asking Zasia for money.

Zasia can be left liable for medical payments

Zasia can be left liable for medical payments.

When shopping online, how does checking what is in your cart help you to avoid the "sneak into basket" scam?

It will give you a chance to opt-out of future emails.

It makes sure you used the right credit card.

It can help you catch retailers automatically signing you up for additional items.

It will prevent hackers from putting their items in your cart.

It can help you catch retailers automatically signing you up for additional items.

Bart's cousin is trying to convince him to invest in cryptocurrency. The cousin shows him a video about investing in cryptocurrency, which had two million "likes" on a video-sharing platform. He also points out the many comments where people describe making a lot of money. Which factor is the cousin using to influence Bart to invest his money?

Commitment and Consistency

Social Proof

Scarcity

Reciprocity

Social Proof

The first step to defeat hidden fees is to _____.

complain online about it.

notice the fees are there.

stop the sale and start over.

contact your congressional representatives.

notice the fees are there

Bella is comparison-shopping boxes of granola bars. She notices the price per granola bar is cheaper if she buys the box of 48 for $8, instead of the box of 24 for $5. What factor is she comparing?

Quantity

Longevity

Brand Reputation

Return Policy

Quantity

In which of the following scenarios does it make the MOST sense for the person to comparison shop?

Maxine is at her local grocery store and decides to buy a pack of gum at the register.

Nghia is on his way to a friend's birthday party and needs to purchase a card.

Vivek is stopping by a cafe before school to get coffee and a bagel.

Esperanza's old phone broke and she is looking to buy a new one.

Esperanza's old phone broke and she is looking to buy a new one.

Which best describes why a pyramid scheme is an investment scam?

Pyramid schemes are a type of scam in which a company sells you products that you never actually receive.

Pyramid schemes require investing in stocks and bonds.

Pyramid schemes depend on recruiting new people; when there are no more new investors, the money runs out.

Pyramid schemes involve fraudsters hacking into social media, bank, and email accounts.

Pyramid schemes depend on recruiting new people; when there are no more new investors, the money runs out.

When deciding to follow an influencer on social media, the most important thing followers value is...

How authentic the influencer appears.

Who sponsors the influencer.

The types of products and services the influencer promotes.

The number of followers the influencer has.

How authentic the influencer appears.

All of the following are true about the impact of social media and influencers on a consumer's decisions EXCEPT...

Influencers always use credible sources when making recommendations and sharing information with their followers.

Social media can repeatedly show a consumer advertisements for products they were looking at online.

Certain products may go out of stock in record time due to buying trends driven by social media.

Consumers may decide to purchase something they don't necessarily need.

Influencers always use credible sources when making recommendations and sharing information with their followers.

David wants to start using social media more mindfully. Which of the following is a good next step for him to do so?

Schedule time for him to binge use social media three times a year. Otherwise, he stays logged out of his accounts.

Curate his feed so that he sees fewer posts from friends, family, and influencers who make him feel like he needs to spend more.

Have a friend or family member frequently change his social media account passwords to decrease how often he logs in.

Delete all of his social media apps immediately to avoid spending.

Curate his feed so that he sees fewer posts from friends, family, and influencers who make him feel like he needs to spend more.

Which is NOT a method that social media uses to influence consumers to buy?

Blurring out product names in videos.

Persuasive product review videos.

Constant "nudges" (like pop-ups) that encourage people to buy.

Influencers posting about products.

Blurring out product names in videos.

Which of the following is NOT a likely result of a product going viral on TikTok?

More consumers buy it.

Sellers begin offering huge price discounts.

A song rises in Billboard ratings.

Manufacturers run out of the product.

Sellers begin offering huge price discounts.

All of the following are common types of social media scams EXCEPT...

Library fee scam

Online shopping scam

Romance scams

Investment scam

Library fee scam

Which of the following is an example of protecting financial information against technology-based attacks?

Malaysia updates her passwords regularly by logging into the sites she uses and using the "change my password" option on those websites.

Which of the following is a proactive way to safeguard your financial information?

Paying for a credit-monitoring service.

Monitoring your credit report annually.

Using a credit card with zero-liability protection.

Freezing your credit.

Freezing your credit.

Which of the following is TRUE about recent trends in identity theft?

Most cases involve the unauthorized use of credit cards or bank accounts.

Young people are never victims of identity theft.

Most cases of identity theft result in a large dollar amount lost.

The number of identity theft reports has significantly decreased over the past decade.

Most cases involve the unauthorized use of credit cards or bank accounts.

Sofia receives a text message from her bank. All of the following indicate that the text may actually be a scam EXCEPT...

The text message indicates that she will lose a significant amount of money if she does not respond within 1 hour.

The text message asks her to call the number that is on the back of her debit card.

The text message has a few spelling errors in the body of the text.

The text message includes a link that starts with "http".

The text message asks her to call the number that is on the back of her debit card.

Which type of expense can be frustrating and, for the most part, unpredictable?

Fixed

Whammy

Recurring

Non-Recurring

Whammy

Which type of expense can occur on a regular date, for a standard amount?

Whammy

Non-Recurring

Fixed

Recurring

Fixed

You are putting together your first post-graduation budget. Your net pay is $2,500 per month and you estimate that your monthly expenses will be $2,625. How would you describe your budget?

You have a deficit (shortage) of $125

You have a deficit (shortage) of $2,625

You have a surplus of $125

You have a surplus of $2,500

You have a deficit (shortage) of $125

Janine is considering what auto costs she is going to have after buying a new car. She has budgeted enough money for the monthly auto loan payment, fuel, and auto insurance. Has Janine factored in all of the costs associated with car ownership?

No, she needs to factor in additional costs such as maintenance, car registration and car taxes.

Yes, these are the three costs she should expect to pay once she is a car owner.

No, she does not need to include the cost of fuel as it is covered under her auto insurance policy.

No, she does not need to include the cost of auto insurance as it is included in her auto loan payment.

No, she needs to factor in additional costs such as maintenance, car registration and car taxes.

Which type of expense happens reliably throughout the month, though not always on the same date?

Non-Recurring

Recurring

Whammy

Fixed

Recurring

When renting an apartment, why is it important to have a written lease?

Without a lease, a renter won't know how much to budget for rent, food, insurance, or transportation.

It is against the law to live somewhere without a lease.

A lease clearly states the apartment costs and expectations for living there.

Signing a lease provides you with free or discounted renters insurance.

A lease clearly states the apartment costs and expectations for living there.

Which is a good financial reason for buying a used car instead of a new one?

A new car quickly loses its initial value, but the loan payments will stay the same.

Styles change and buyers may want to buy another new car soon.

The interest amount paid on a car loan is the same if the vehicle is new or old.

Payments remind people to take good care of their vehicles.

A new car quickly loses its initial value, but the loan payments will stay the same.

Which best explains how unit pricing helps with cost cutting?

It explains the price of one package of a product.

It shows which item is healthier.

It helps shoppers compare the cost of items in different-sized packages.

It helps consumers choose products with less waste.

It helps shoppers compare the cost of items in different-sized packages.

Haley wants to live in an area where she can get around easier without owning a car. What type of setting would most likely meet her requirement?

Suburban

Country

Rural

Urban

Urban

Which of these boxes of cereal has the LOWEST unit price?

Cereal B, which costs $5.00 for a 32 oz. box.

Cereal C, which costs $4.00 for a 16 oz. box.

Cereal A, which costs $3.20 for a 16 oz. box.

Cereal D, which costs $4.50 for an 8 oz box.

Cereal B, which costs $5.00 for a 32 oz. box.

Janelle has been accepted to State U and Greenlawn College and is comparing their financial aid packages. State U has a sticker price of $28,000 and a net price of $12,000. Greenlawn College has a sticker price of $60,000 and a net price of $9,000. Which statement below is TRUE?

State U has a lower net price than Greenlawn College.

Greenlawn College is providing Janelle with more grants and scholarships.

Correct.

The sticker prices of both schools are impacted by a family's total annual income.

If making a decision strictly based on cost, Janelle's best option is State U.

Greenlawn College is providing Janelle with more grants and scholarships.

Correct.

As a result of completing the FAFSA, you get a student aid report that indicates your expected family contribution (EFC) is $10,000. What does this mean?

a.

You can expect to receive $10,000 in loans from the federal government to pay for college.

b.

You should only apply to schools that cost $10,000 or less.

c.

You can expect to receive $10,000 in grants from the federal government to pay for college.

d.

The government expects that your family can contribute about $10,000 to the cost of your education.

d.

The government expects that your family can contribute about $10,000 to the cost of your education.

Which of the following is considered a direct cost of attendance?

a.

Cell phone bill

b.

Travel expenses

c.

Tuition

Correct.

d.

Food and entertainment

c.

Tuition

Which statement is NOT true about South Carolina state-funded aid for education?

a.

Students must be South Carolina residents

b.

There are financial assistance options for students with GPAs as low as 2.0.

c.

There are financial assistance options based on academic achievement (higher GPA, class rank, SAT/ACT scores)

d.

State financial assistance is available only for students attending four-year colleges.

d.

State financial assistance is available only for students attending four-year colleges.

Which of the following ways to pay for college is MOST likely to be based on someone's financial need?

Question 5Answera.

Grants

b.

Scholarships

c.

Direct PLUS loans

d.

Federal Subsidized Loans

Grants

Which loan type am I?

I have limits on the amount that you can borrow based on your year in college. The federal government makes the interest payments on me while you are in college, and you make the interest payments on me after you graduate.

Question 6Answera.

Subsidized Federal Student Loan

b.

Private Student Loan

c.

Unsubsidized Federal Student Load

d.Institutional Student Loan

Subsidized Federal Student Loan

Which statement best describes the purpose of the Free Application for Federal Student Aid?

Question 7Answera.

It applies students for private, non-government loans.

b.

It provides a way to restructure student loan debt.

c.

It enters students into a lottery for educational funds.

d.

It is the first step in qualifying for federal assistance for school financing.

d.

It is the first step in qualifying for federal assistance for school financing.

How often should a student file the FAFSA?

Question 8Answera.

At the end of each college semester

b.

Once in the last year of high school

c.

Only in years when a student might need the aid

d.

Before each year of college

d.

Before each year of college

When filing the FAFSA online, you need...

Username and password for FSA ID

Your Social Security Number (or Alien Registration Card if not a US citizen)

Proof of Employment

Bank and/or investment statements (if applicable)

Question 9Answera.

I, III, & IV only

b.

I, II, III, & IV

c.

I, II, and IV only

d.

I & II only

c.

I, II, and IV only

Which of the following educational funding options has the highest potential repayment cost?

Question 10Answera.

Work-Study

b.

Grants & Scholarships

c.

Federal Loans

d.

Private Loans

Private Loans

Your friends are having a debate about rules of thumbs to use when it comes to student loan debt. Who is CORRECT?

Question 11Answera.

Miguel says, "You should borrow as much money as you can through private student loans, and then take out federal student loans."

b.

Dani says, "You should avoid student loans no matter what, even if that means you have to work long hours and can't take a full course load."

c.

Aisha says, "You should borrow all of the financial aid your college offers you in your financial aid offer, even if you don't need it all."

d.

Jason says, "You should generally limit your borrowing to what you expect to earn as a starting salary when you graduate from college, and avoid private student loans."

Jason says, "You should generally limit your borrowing to what you expect to earn as a starting salary when you graduate from college, and avoid private student loans."

Of the following educational funding options, which is the MOST advantageous?

Question 12Answera.

Private Loans

b.

Work-Study

c.

Grants & Scholarships

d.

Federal Loans

c.

Grants & Scholarships

Which is true about FAFSA and state financial aid for education?

Question 13Answera.

All states have the same deadline of April 15 for the FAFSA.

b.

The FAFSA deadlines for different states are posted on the FAFSA Website.

c.

The FAFSA has no connection with state aid.

d.

Deadlines for applying for state aid can vary and are available at your state's Department of Revenue.

The FAFSA deadlines for different states are posted on the FAFSA Website.

How much does it cost to file the FAFSA?

Question 14Answera.

It is $50.

b.

It is 2% of your total loan amount.

c.

It is free the first time you file, but costs $9.99/year thereafter.

d.

It is free.

It is free.

What is the relationship between the FAFSA, a Student Aid Report (SAR), and a Financial Aid Package?

Question 15Answera.

The answers you submitted in your FAFSA are reported in your SAR. Schools then use your SAR to create a Financial Aid Package for you.

b.

Schools use the answers you submitted in the FAFSA to create a Financial Aid Package for you, which is then sent to you in a SAR.

c.

You submit a SAR to determine if you are eligible to file the FAFSA. If you are, you submit the FAFSA and then receive a Financial Aid Package.

d.

You receive a Financial Aid Package first. Then, you file the FAFSA and get your SAR.

The answers you submitted in your FAFSA are reported in your SAR. Schools then use your SAR to create a Financial Aid Package for you.

What effect will paying only the minimum required loan payment amounts have on your finances over the life of the loan?

Question 16Answera.

You will pay less in interest over the life of the loan.

b.

Whether you pay the minimum payment or more has no effect on the overall cost of the loan.

c.

You will pay more in interest over the life of the loan.

d.

You will pay the loan off faster than if you paid more monthly.

c.

You will pay more in interest over the life of the loan.

During a period of financial hardship, you can apply for this to pause student loan payments while interest still accrues...

Question 17Answera.

FAFSA

b.

Forbearance

c.

Grants and scholarships

d.

Grace period

Forbearance

Susan has $40,000 of federal student loan debt and chooses to make a monthly payment of $200. Brian also has $40,000 in federal student loan debt and chooses to make a monthly payment of $350. Assuming both loans carry the same interest rate, which of the following statements is TRUE?

Question 18Answera.

Susan's loan repayment term is shorter than Brian's loan repayment term.

b.

Susan will pay LESS in interest over the term of her loan.

c.

Brian will pay MORE in total because he has a lower credit score than Susan does.

d.

Brian will pay LESS in interest over the term of his loan.

Brian will pay LESS in interest over the term of his loan.

Jan needs help with the funding to go into a welding apprenticeship program. Which of the following is an investment option that can help fund Jan's apprenticeship?

Question 19Answera.

Home equity loan

b.

Coverdell account

c.

Form 1040

d.

529 plan

529 plan

Which of the following is an investment plan to help pay for college expenses?

Question 20Answera.

Promissory note

b.

FAFSA

c.

Grants

d.

529 Plan

529 Plan

On a pay stub, the amount of money that is left after withholdings is known as...

Question 1Answer

annual earnings

wages and tips

gross pay

net pay

net pay

Withholdings are amounts held back from paychecks and are based on

Question 2Answer

Age

Citizenship status

Marital status and number of dependent

Employment status

Marital status and number of dependent

On a Form 1040, a standard deduction:

Question 3Answer

Depends on your charitable contributions

Depends on your mortgage interest

Is a specific amount determined by filing status

Is the same amount regardless of filing status

Is a specific amount determined by filing status

All of the following are factors that impact the amount someone may pay in taxes EXCEPT...

Question 4Answer

State

Political party

Marital status

Income

Political party

Which of the following taxes is not withheld from your paycheck?

Question 5Answer

Sales tax

State income tax

Federal income tax

FICA

Sales tax

Which of the following statements is TRUE about state and federal taxes?

Question 6Answer

States with HIGHER costs of living have LOWER state and local taxes.

State and local governments use the same tax rates for all tax payers.

States with HIGHER costs of living have HIGHER state and local taxes.

How much you pay in state and federal taxes can impact your net income.

How much you pay in state and federal taxes can impact your net income.

Audrey lives in York county, which has a 7% sales tax. She is car shopping and found a $10,000 car in York county, and another $10,000 car in neighboring Cherokee county, which has an 8% sales tax. What will be the effect on her finances if she buys the car in Cherokee county?

Audrey will save $100 in sales tax.

Audrey will pay $1000 more in sales tax.

Audrey will save $800 in sales tax.

Audrey will pay $100 more in sales tax.

Audrey will pay $100 more in sales tax.

Demarcus lives in a county with a 2% "hospitality tax." This tax applies to ready-to-eat food or drinks prepared on-site at restaurants, grocery stores, and certain other businesses. If Demarcus takes his mother out for a birthday dinner, and the total bill before tax is $50, how much will the hospitality tax add to the bill?

Question 8Answer

$2.25

$5.00

$7.50

$1.00

$1.00

Spartanburg county adds a 2% "hospitality tax" on ready-to-eat food or drink items prepared on-site at restaurants, grocery stores and certain other businesses. Considering the possible hospitality tax, which of the following items would be least expensive?

Question 9Answer

$10 coffee, sandwich and fruit salad prepared in a local coffee shop

$10 fruit salad prepared and packaged in a grocery store produce department

$10 boxed cereal, a gallon of milk and a bunch of bananas

$10 fried chicken meal prepared in a grocery store's deli department

$10 boxed cereal, a gallon of milk and a bunch of bananas

Which of the following statements about the W-2 form is TRUE?

Question 10Answer

The W-2 includes information about the interest you earned from your investments.

You need a separate W-2 form from EACH of your employers in order to file your taxes.

A W-2 lists all the money you earned in cash over the last year.

The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form.

You need a separate W-2 form from EACH of your employers in order to file your taxes

What is the name of the tax form that requires you to provide identification and proves you are eligible to work in the U.S.?

Question 11Answer

I-9

1040

W-4

1099

I-9